The Office of the Comptroller Capital Asset Management

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The Office of the ComptrollerCapital Asset
Management

• November, 2008
• Updated July 2009

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Capital Asset Management

• Agenda
• Policies 9 slides, wordy
• Phases and Players 12 slides
• Circular A110
• Who to call 1 slide
• Where to find this presentation
• www.gwu.edu/gwco/staff.html
• What are we talking about?
• Equipment / Furniture and Fixtures

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Capital Asset ManagementGWU Policies

• Where can they be found?
• http//my.gwu.edu/mod/upolicy/index.cfm
• Under the Policies tab, Finance, Accounting and
  Budgeting, Fixed Assets Management
• What are the policies
• Fixed Asset Management
• Capital Asset Management Policy
• Furniture and Equipment Capitalization Threshold
• Surplus University Property
• Electronic Equipment Recycling Policy (Public
  Safety and Risk Management)  

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Capital Asset ManagementGWU Policies

• The Capital Asset Management Policy
• Consistent with the Universitys Procurement Card
  (P-Card) Policy
• Purchase of any item with a unit cost of 2,500
  or greater must be ordered through the
  Procurement Department on a Purchase Order and
  recorded through the Enterprise Accounting System
  (EAS).
• Since Capital Assets are defined as items having
  a value of 2,500 or greater, all Capital Assets
  must be purchased through the Procurement
  Department.

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Capital Asset ManagementGWU Policies

• FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD
• A capital asset is defined as an article or a
  system of
• Non-expendable, tangible property
• Having a useful life of more than one year
• A per-unit value of 2,500
• Is used in the operations of the University
  (i.e., the item is not purchased as an investment
  or held for resale).

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Capital Asset ManagementGWU Policies

• FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD
  (Continued)
• The cost of an asset includes
• the cost of the item and
• all costs necessary to make the asset available
  for use.
• The subsequent purchase of additional components
  that provide new functionality to a capital asset
  should be added to the cost of the asset.

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Capital Asset ManagementGWU Policies

• FURNITURE AND EQUIPMENT CAPITALIZATION THRESHOLD
  (Continued)
• Replacement of worn out parts, such as light
  bulbs or filters, are
• considered to be expendable supplies (are
  expected to be replaced periodically)
• not added to the cost of the capital asset

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Capital Asset ManagementGWU Policies

• Surplus University Property
• What is it
• property that wears out,
• becomes obsolete or
• is no longer needed in operations,

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Capital Asset ManagementGWU Policies

• Surplus Property Policy (Continued)
• What do we do (continued)
• The following types of dispositions of surplus
  property must be handled by Materials Management.
• Sales of surplus property with a unit value
  greater than 500
• Sale of surplus property that has a registered
  title (e.g. automobiles)
• Donations of surplus property

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Capital Asset ManagementGWU Policies

• Surplus Property Policy (Continued)
• CONVERSELY
• Department Heads may dispose directly of surplus
  property that does not meet the requirements set
  forth above provided that the following
  requirements are met
• Transfers to other GW departments are reported to
  the Office of the Comptroller (Change in Fixed
  Asset Status Form)
• Property may be sold to third parties, including
  employees for personal use provided the fair
  market value of the property does not exceed
  500.00. Sales must be made at fair market
  value.
• Release and Waiver Form, Bill of Sale Form, and
  Change in Fixed Asset Status Form approved by the
  appropriate department manager. Completed forms
  must be sent to Materials Management with a copy
  to Capital and Investing Reporting.

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Capital Asset ManagementGWU Policies

• Surplus property Policy (Continued)
• Property Acquired through Sponsored Projects
• Prior to disposing of surplus property purchased
  with sponsored project funds the department head
  first must secure approval for the proposed
  disposition by completing the Change in Fixed
  Asset Status Form and submitting it to the Office
  of Vice President for Research (OVPR).
• Find our form
• http//www.gwu.edu/gwco/FORMS

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Capital Asset Management
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Acquisitions
Department selects vendor?
Department sends supporting document to
purchasing
Department identifies need for asset
Department prepares purchase requisition
Yes
No
Procurement prepares purchase order
AP performs 3-way match of invoice, purchase
order, and receipt information
Department receives goods (in Oracle/EAS)
Asset is received
Invoice is received
AP pays invoice
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Acquisitions Gifts or Loans
Gift or Loan received
Department notifies Office of the Comptroller
Grant related?
Department notifies Office of the Comptroller
No
Yes
Department notifies OVPR
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Acquisitions The CIR Teams Responsibilities

• Provide direct administrative support to the
  operating department regarding the control and
  maintenance of Capital Assets.
• Tagging assets
• Record keeping - FAS
• Ledger reconciliations GL and GM vs. FAS
• All Capital Asset records are maintained in
  accordance with OMB Circular A-110 and GAAP.

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OMB Circular A-110

• Description of the asset
• Manufacturers Serial No.
• Model Number
• Award Number- PTA
• Title Vesting Information
• Acquisition Date
• of Federal Participation
• Location of the asset
• Condition of the asset
• Unit cost
• Disposition information

• Federally owned equipment shall be identified as
  such
• Physical inventory must take place every 2 years.
• Controls to adequately safeguard asset from loss,
  damage or theft.
• Adequate maintenance procedures should be in
  place to keep equipment in good condition
• Highest possible sale procedures

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Movement
Department identifies asset to be moved to a new
location
Department completes a Change in Fixed Asset
Status Form
Department authorizes form
Grant related asset?
No
Yes
Department head authorizes form
OVPR authorizes form
Department completes facilities FIXit request
Department sends form to Office of the Comptroller
Facilities moves asset
Office of the Comptroller verifies asset to be
moved
Office of the Comptroller verifies asset in new
location
Office of the Comptroller updates database for
new location
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Movement of Assets

• The inventory process can only be successful if
  the database used to track assets is accurate.
• The responsibility of maintaining the databases
  accuracy falls on the CIR team
• The CIR team relies on the individual schools,
  departments and asset custodians to communicate
  any changes to the assets location or
  usefulness.

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Inventories

• Operating Departments
• Responsible for maintaining the assets working
  condition
• Responsible for maintaining an accurate location
  listing for all their assets
• Capital and Investing Reporting
• Responsible for validating the existence,
  location and condition of each Capital Asset
• Sponsored project assets are inventoried pursuant
  to OMB Circular A-110 guidelines (every 2 years)
• The ledgers are reconciled to the inventory
  observed.

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Disposals
Department decides asset available for disposal,
sale, donation, or transfer
Department completes Change in Fixed Assets Form
Department head authorizes form
Is the asset grant related?
No
Is the asset a computer or electronic?
No
Yes
OVPR also authorizes form
Yes
Department contacts ISS
ISS ensures confidential programs / files are
erased
Facilities removes asset
Department completes facilities FIXit Request
Department forwards form to Office of the
Comptroller and Procurement
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Disposal Special RulesReminder

• Special rules apply to assets under sponsored
  project funding. Please check the provisions of
  your award and with OCRO
• If an Asset is Sold
• Material Management and CIR should be contacted
  to provide estimated market value and the current
  Net Book Value.
• If the value is under 500, the department can
  handle the sale directly.
• If the value is over 500, the Materials
  Management department is required to handle the
  sale.
• Required Paperwork Change in Fixed Asset Status
  form, Release of Waiver form and Bill of Sale
• If Donated
• The same steps as a sale should be followed
• Find our form at
• http//www.gwu.edu/gwco/FORMS

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Disposal- Internal Transfers

• Internal Transfers
• The operating department completes a Change in
  Fixed Asset Status Form (http//www.gwu.edu/gwco/
  FORMS)
• The form is approved by the department head
• The form is forwarded to the Capital and
  Investing Reporting Team in the Office of the
  Comptroller
• The asset is transferred to the receiving
  department
• Capital and Investing Reporting will contact
  receiving department to confirm receipt and may
  ask to schedule time to visually inspect the
  asset in its new location.
• The department should keep a copy of all
  documents

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Who to call in Fixed Assets

• For asset recognition and
• For asset tagging
• Ellen Thompson 703-726-4216 EMThomp_at_gwu.edu
• For inventory scheduling and
• For asset movement, transfer or disposal
• Patrick Gerhold 703-726-4195 PGerhold_at_gwu.edu
• For capital lease information
• Jeff Jones 703-726-4212 Jonesjd_at_gwu.edu
  
• For all other questions
• Cassandra West 703-726-4054 Cwest_at_gwu.edu
• Dan MacGregor 703-726-4115 Dmacgreg_at_gwu.edu